In a significant move, Strategy divested 3,588 bitcoin for a total of $216 million to fulfill dividend payments on preferred stock, as revealed by co-founder Michael Saylor in a Monday update.
The Latest Sale Details
The transaction, executed on July 5, 2026, helped to finance dividends associated with several preferred stock offerings, namely STRF, STRE, STRK, STRD, and STRC. Following the sale, Strategy's bitcoin holdings decreased to 843,775 BTC, while cash reserves rose to $2.55 billion, Saylor noted.
Historical Context of Sales
This transaction represents the third occasion that Strategy has sold bitcoin since December 2022, despite the company’s longstanding reputation for embracing a buy-and-hold philosophy. The prior sale occurred between May 26 and May 31, 2026, when they sold 32 BTC for approximately $2.5 million, with an average price nearing $77,135 per bitcoin. This information was disclosed in an SEC Form 8-K filing around June 1, 2026.
The scale of the latest sale is notably larger, as the average selling price was about $60,201 per bitcoin, indicating a downturn in bitcoin prices from late May to early July.
Implications of Preferred Stock Dividends
Strategy’s preferred shares, STRF, STRE, STRK, STRD, and STRC, provide regular dividends to their investors. By utilizing this mechanism, the company can secure capital without resorting to selling common stock or outright bitcoin.
When faced with lower bitcoin prices or tighter cash flow, Strategy must decide between utilizing cash reserves, raising capital, or selling bitcoin to meet dividend responsibilities. In this instance, the latter option was chosen.
Impact on Traders and Future Outlook
The sale signals to traders that the dividend obligations on preferred shares now significantly affect Strategy’s financial statements. Covering $216 million in payouts illustrates a shift from their long-established strategy of accumulation. With over 100 times the volume sold compared to the previous transaction, this sale has attracted the attention of investors monitoring how effectively Strategy can sustain dividend disbursements without engaging in further bitcoin sales.
Despite this reduction, Strategy remains one of the largest corporate holders of bitcoin, possessing 843,775 BTC. The substantial cash reserves of $2.55 billion afford the company a buffer for imminent obligations. Whether more bitcoin will be sold in the future will largely hinge on bitcoin price movements and the magnitude of subsequent dividend payments across its preferred shares.
